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Senate approves third‑substitute of SB 96 to implement Proposition 3 with waiver-based bridge plan
Summary
After hours of debate, the Utah Senate passed the third‑substitute version of Senate Bill 96, a compromise implementation of Proposition 3 that creates a bridge Medicaid expansion funded by short‑term appropriations and contingent on federal waivers; the measure passed 22–7 and will move to the House.
Senate sponsor Senator David Christiansen moved and the Senate passed the third‑substitute of Senate Bill 96 on Feb. 5, 2019, adopting a waiver‑focused, phased approach to implementing Proposition 3 (the voter‑approved Medicaid expansion). The Senate recorded a final vote of 22 in favor and 7 opposed, and the bill will be referred to the Utah House for consideration.
Christiansen told colleagues the substitute is intended to preserve long‑term program stability while seeking a 90/10 federal match through administrative waivers. Under the bill’s bridge plan, the state will commit up to roughly $74 million to cover the program’s first 18 months while the administration pursues short‑term and then long‑term waivers, shifting some funding sources between dedicated credits and the general fund as technical adjustments. "We're spending some money to gain some long‑term benefits," Christiansen said in summation, urging support for the compromise.
Opponents, led by Senators Angela Escamilla and Davis, questioned the fiscal logic and the waiver strategy. Escamilla offered Amendment 1 to keep the bill’s savings but revert to full Proposition 3 expansion if federal waivers were not secured; the amendment failed after a division vote. Critics argued that other states have reported enrollment and cost overruns after expansion and that the projected waivers (including per‑capita caps and reduced match rates) are unprecedented and risky to rely on. Senator Davis described the approach as a "bet" that the federal government would grant waivers no other state has received.
Supporters including Senators Fillmore, Hillier and Thatcher framed SB 96 as the most pragmatic, fiscally responsible path available this session: it covers more people than the current baseline, adds fiscal guardrails such as a hospital assessment and adjusted growth mechanics, and leaves room for future legislative refinements. Several speakers emphasized the trade‑off between honoring the voters’ decision and meeting constitutional budgeting duties.
Key fiscal figures were debated on the floor. Christiansen cited a projected net annual savings by 2024 in committee materials (he referenced a figure of roughly $87 million in longer‑term savings versus higher costs under the unamended proposition), while Escamilla and others pressed for specificity on the $74 million identified for the 18‑month bridge and on the sources and permanence of those funds.
The Senate rejected Escamilla’s amendment and ultimately approved the third substitute, recording a 22–7 vote. The bill’s passage sends Utah’s negotiated approach to Proposition 3 to the House, where lawmakers will continue discussion and must reconcile technical details and funding sources before either chamber can send final legislation to the governor.
Next steps: SB 96 goes to the Utah House for consideration. If the House amends the measure, the two chambers may convene a conference committee to resolve differences. The bill’s implementation also depends on federal waiver approvals, which lawmakers warned could be difficult to secure.
